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PR Newswire
11 hours ago
The Oriental Food Industries Holdings (OFI) group manufactures and markets snack food and confectionery products.
Between 2019 and 2024, OFI has transformed into a sustainability-driven, digitally-savvy, and globally expanding company through strategic initiatives that have strengthened its market position.
• Export sales now contribute approximately 65% of total revenue, reflecting OFI’s successful international expansion.
• Sustainability efforts include integrating solar energy at select manufacturing plants, reducing carbon emissions and operating costs.
• Digital transformation has been a key focus, with expanded e-commerce presence and stronger branding efforts on social media, enhancing direct engagement with consumers.
These initiatives have driven strong financial performance, with revenue growing at a CAGR of 8.5% over the past six years. Profitability has improved even more significantly, with PAT growing at a much higher CAGR of 24.9%, supported by gross profit margin expansion and declining fixed cost margins.
The various changes have positioned the company for long-term sustainable growth while maintaining its market leadership in Malaysia and beyond. Given these strengths, it is no surprise that OFI falls into the low-risk, good-business segment of the Fundamental Mapper.
![[Image: OFI-17-Mar-2025.png]](https://i.postimg.cc/jjLHmjBb/OFI-17-Mar-2025.png)
The market price has trended upward in recent years, reflecting the company's improving prospects. Although it has pulled back from its three-year high, the current margin of safety appears limited. However, if earnings continue to grow while the stock price remains stable, the margin of safety could improve over time.
Between 2019 and 2024, OFI has transformed into a sustainability-driven, digitally-savvy, and globally expanding company through strategic initiatives that have strengthened its market position.
• Export sales now contribute approximately 65% of total revenue, reflecting OFI’s successful international expansion.
• Sustainability efforts include integrating solar energy at select manufacturing plants, reducing carbon emissions and operating costs.
• Digital transformation has been a key focus, with expanded e-commerce presence and stronger branding efforts on social media, enhancing direct engagement with consumers.
These initiatives have driven strong financial performance, with revenue growing at a CAGR of 8.5% over the past six years. Profitability has improved even more significantly, with PAT growing at a much higher CAGR of 24.9%, supported by gross profit margin expansion and declining fixed cost margins.
The various changes have positioned the company for long-term sustainable growth while maintaining its market leadership in Malaysia and beyond. Given these strengths, it is no surprise that OFI falls into the low-risk, good-business segment of the Fundamental Mapper.
The market price has trended upward in recent years, reflecting the company's improving prospects. Although it has pulled back from its three-year high, the current margin of safety appears limited. However, if earnings continue to grow while the stock price remains stable, the margin of safety could improve over time.